System Schedule Report

Dan Boone, Chairman

The Leading Edge, March 2000

MANPOWER ISSUESAwarding of Unadvertised Vacancies to New-Hires.
Company continues to award vacancies to new-hires that were never bulletined.
These are unadvertised "backfills" that go unfilled. SSC requested that
only advertised bids that go unfilled should be awarded to new-hires.

Flying, Training and VacationThe SSC questioned whether the Company is on track for 4,500 seat changes
this year. Bid levers for the spring have been suppressed somewhat by the
requirement to liquidate vacation. SSc questioned whether training levers
could be increased during the summer and still protect summer flying. SSc
questioned the lack of SFO B-400 Captain bids. The company had excess B-400
training capacity until recently but did not train additional B-400 captains
required. B-400 training capacity is now full. Company is conformable with
B-400 manpower level. SSC questions A-320 and B-400 staffing levers for
summer flying.

Modest Domestic PulldownsUAL will modestly pull down domestic flying this spring to accomplish
training needed for increased international flying (particularly B-400
SFO summer flying). The pulldown will result in a 3,500 hour decrease (40-50
lines) in domestic operations. Domestic growth is relatively flat for 2000,
while International growth is large. UAL hopes to position itself to participate
in the Asian economic recovery.

Vacation LiquidationIt is not appropriate for a pilot changing fleets/seats/domiciles to
retain his vacation from his previous status as that would permit him to
enjoy a vacation that might not be consistent with his new relative seniority.
Loss of annual vacation assignments due to change in fleet/seat/domicile
without any requirement to restore those vacations to the fleet/seat/domicile
monthly allocation where the vacations were lost by rebidding effectively
nullifies the contractual monthly percentages specified for the domiciles.
MEC DIRECTION REQUESTED.

LAX DC-10/HNL B-400 BASE CLOSINGSSC disagrees with Company's position regarding base closures (pilots
are reserves until sent to training unless the Company needs them TDY).
This limits the pilot's ability to exercise his seniority and restricts
him to 78 hours pay. SSC position is that once a base is closed the Company
may offer voluntary TDY or the Company may involuntarily TDY a pilot for
up to 30 days. The SSC position is that the Company may not place a pilot
on reserve for 8-L-5 assignments in a domicile that does not exist. The
incentive for Company to quickly get pilots into training is the 30 day
TDY limit. MEC REVIEW REQUESTED.

NPDMs (NOTICE OF PROPOSED DECISION MAKING)ORD Freighter DomicileNPDM process was waived by MEC. The Company qualified all ORD DC-10
pilots for domestic freighter operations. ORD DC-10 pilots will
receive 2 hour credit time (similar to TCAS and FANS training as discussed
in Letter 95-16) for any required viewing of the DC-10-30F Differences
and Hazardous Cargo tapes as part of their qualification. As part of the
understanding the SSC reached with the Company associated with qualifying
ORD DC-10 pilots for domestic Freighter operations the Company was to commit
to a Side Letter prohibiting the involuntary 8-L-5 from non-freighter domiciles
to do freighter flying. This was to fix a continuing problem that had resulted
in pilots being illegally assigned (by the contract) to do ANC freighter
flying. The Company has not honored their verbal agreement to a side letter.

Base Closure/Opening ProcessThe Company has a difficult time committing to a firm base closure/opening
time schedule more than a few months out. While most of this is attributable
to inappropriate manpower planning, some of it can be attributed to the
lack of sufficient contractual language balancing the needs of the Company
to have a definite mechanism for a "phased" base closing/opening process
while protecting pilots from potentially onerous working conditions. This
creates hardship and uncertainty for those who are trying to make numerous
personal or family decisions normally associated with a domicile/seat change.
Issues that need to be addressed include: timing of the base opening/closing
in relation to the start/finish of assigned flying; training dated in relation
to timing and seniority; and the current 90-day limit to put out "bump"
letters. MEC ACTION REQUESTED.

Company's Position On Base Openings
The Company generally looks for three factors to justify a base opening:
(1). 30 lines of flying;
(2) schedule efficiencies;
(3) stability (flying committed to the base for at least 3-4 years)

DOMICILESLAX Domicile StabilitySystem line levels have gone up, LAX departures have gone up, LAX line
levels have decreased. SSC is concerned that the hotel cost parameter
in the manpower program is potentially shifting flying away from senior
domiciles where hotel costs are cheaper to more junior domiciles where
hotel costa are more expensive. The manpower program would shift flying
to save a penny.

DEN B-777 BaseThe Company would like to have a B-777 International Destination out
of DEN before opening a base, DEN-LHR or DEN-FRA (more likely option).
The Company presented a possible scenario for DEN to fly up to 36
lines of B-777 flying in DEN The scenario follows: 8 lines DEN-LHR, 8 lines
DEN-FRA, 12 lines forced flying (assume 25% of the new Y2K domestic B-777
flying). Using this example, the SSC pointed out that 20 domestic lines
in the later half of 2000 would justify an opening without International
flying.

SSC position is that B-777 International destination is not a requirement
and will continue to aggressively pursue a DEN B-777 base System B-777
flying will be increasing by 57 lines by later half of 2000. DEN will have
the system seniority and B-777 departures to justify a B-777 base. Company
needs to commit to opening a DEN B-777 base before misallocation of manpower
becomes an issue. SSC requested a decision point from the Company as to
when to open a base. MEC ACTION REQUIRED

ORD B-767 International BaseThe ORD B-767 International Base is justified. ORD has 4 international
B-767 departures. Marketing believes that the B-767 International flying
will continue to be flown from ORD. The Company continues to refuse to
consider a ORD B-767 International base. MEC ACTION REQUIRED.

ANC Freighter OperationCompany has considered adding a 5th Freighter but does not appear to
favor that option currently. The Company is currently considering it's
options in regards to a potential follow on freighter.

FLEET/ ROUTE PLANSORD High Density RuleORD is slot constrained. UAL would like to grow ORD. Congress allocates
slots, but action got bogged down last session. UAL hopes to hear definitively
within two years on any slot action. At present, we have the edge over
AMR. Two carrier fortresses are not viable. The slot issue has delayed
ORD from "shaking out" the economic competition. AMR & UAL will fight
ORD out for prominence if the constriction is relaxed.

HawaiiNo real improvement seen yet. Advance bookings are still light.

B-747-400Pacific market is rebounding. Company is redeploying most of B-400
flying back into the Pacific. The current plan is to use only two B-400
aircraft in European market for the summer of 2000. At the end of spring
2000, DEN-LAX remains the only domestic segment.

HNL B-400HNL-NRT begins March 2000. Two months later HNL-NRT with a tag.

B-777Six two-class B-777s are scheduled for delivery in year 2000 (mostly
in the second half). The Company is reviewing plans for 2 class, B-777
flying between SFO and OGG for March / April. Other potential routings
of the two class B-777s are LAX-ORD, ORD-PHX (2), HNL-LAX, LAX-OGG, and
IAD-SFO. Future options for increased LAX B-777 flying include LAX-AKL
B-777 Nov 2000 (with bunk) and LAX-EZE.

B-777 Two ClassThe present plan is to use this aircraft on the SFO to OGG (Maui) route.
By June 2000, another two class will come on line destined for an unknown
market.

EWR B-777 EWR-LHR to stay in B-777 indefinitely (for now).

ORD B-777ORD-GRU (Sao Paulo) downsized to B767-300 due to lack of B-777s (April
2000). Cargo limitation still a concern.